Multi Fineline Electronix (MFLX) 10-Q 5 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 30, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	MFLX
Entity Registrant Name	MULTI FINELINE ELECTRONIX INC
Entity Central Index Key	830,916
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		24,634,437

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
ASSETS
Cash and cash equivalents	$ 205,744	$ 214,234
Accounts receivable, net of allowances of $745 and $916 at March 31, 2016 and December 31, 2015, respectively	61,059	80,142
Inventories	51,782	56,455
Income tax receivable	143	225
Other current assets	4,671	5,439
Total current assets	323,399	356,495
Property, plant and equipment, net	127,799	131,987
Land use rights	3,190	3,193
Deferred taxes	8,812	8,798
Other assets	810	987
Total assets	464,010	501,460
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	81,198	106,902
Other current liabilities	21,605	22,920
Income taxes payable	2,093	3,124
Total current liabilities	104,896	132,946
Other long-term liabilities	7,440	7,432
Total liabilities	$ 112,336	$ 140,378
Commitments and contingencies (Note 2)
Stockholders' equity
Preferred stock, $0.0001 par value, 5,000,000 and 5,000,000 shares authorized at March 31, 2016 and December 31, 2015, respectively; 0 and 0 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively
Common stock, $0.0001 par value; 100,000,000 and 100,000,000 shares authorized at March 31, 2016 and December 31, 2015, respectively; 24,633,425 and 24,460,997 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	$ 2	$ 2
Additional paid in capital	96,257	97,124
Retained earnings	219,435	229,181
Accumulated other comprehensive income	35,980	34,775
Total stockholders' equity	351,674	361,082
Total liabilities and stockholders' equity	$ 464,010	$ 501,460

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Accounts receivable, allowances	$ 745	$ 916
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	24,633,425	24,460,997
Common stock, shares outstanding	24,633,425	24,460,997

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Net sales	$ 101,246	$ 149,099
Cost of sales	99,579	130,060
Gross profit	1,667	19,039
Operating expenses:
Research and development	1,169	1,374
Sales and marketing	3,094	3,967
General and administrative	6,532	5,492
Impairment and restructuring	(5)	(1,180)
Total operating expenses	10,790	9,653
Operating (loss) income	(9,123)	9,386
Other income and expense:
Interest income	440	354
Interest expense	(88)	(91)
Other income (expense), net	(719)	938
(Loss) income before taxes	(9,490)	10,587
Provision for income taxes	256	1,491
Net (loss) income	(9,746)	9,096
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	1,205	(987)
Total comprehensive net (loss) income	$ (8,541)	$ 8,109
Net (loss) income per share:
Basic	$ (0.40)	$ 0.37
Diluted	$ (0.40)	$ 0.36
Shares used in computing net (loss) income per share:
Basic	24,609,764	24,318,019
Diluted	24,609,764	25,100,781

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net (loss) income	$ (9,746)	$ 9,096
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	9,838	11,474
Deferred taxes	32	(25)
Stock-based compensation expense	1,036	1,220
Asset impairments (recoveries)	(6)	(284)
Loss (gain) on disposal of equipment and assets held for sale	239	(1,096)
Changes in operating assets and liabilities:
Accounts receivable	19,035	45,230
Inventories	5,389	14,370
Other current assets	930	2,940
Other assets	180	(67)
Accounts payable	(25,246)	(41,164)
Other current liabilities	(1,598)	(19,953)
Income taxes payable	(718)	(83)
Other liabilities	(6)	(1,487)
Net cash (used in) provided by operating activities	(641)	20,171
Cash flows from investing activities
Purchases of property and equipment	(6,106)	(3,890)
Proceeds from sale of equipment and assets held for sale	52	6,719
Net cash (used in) provided by investing activities	(6,054)	2,829
Cash flows from financing activities
Tax withholdings for net share settlement of equity awards	(1,904)	(78)
Net cash used in financing activities	(1,904)	(78)
Effect of exchange rate changes on cash	109	89
Net change in cash	(8,490)	23,011
Cash and cash equivalents at beginning of period	214,234	132,382
Cash and cash equivalents at end of period	205,744	155,393
Non-cash investing activities
Purchases of property and equipment	$ 5,463	$ 1,331

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2016
Basis Of Presentation [Abstract]
Description of Business	1. Description of Business Multi-Fineline Electronix, Inc. (“MFLEX” or the “Company”) was incorporated in 1984 in the State of California and reincorporated in the State of Delaware in June 2004. The Company is primarily engaged in the engineering, design and manufacture of flexible printed circuit boards along with related component assemblies. United Engineers Limited (“UEL”) and its wholly owned subsidiary, UE Centennial Venture Pte. Ltd (“UECV”, and together with UEL, “UE”), through its affiliates and subsidiaries, beneficially owned approximately 60% and 61% of the Company’s outstanding common stock as of March 31, 2016 and December 31, 2015, respectively. This beneficial ownership of the Company’s common stock by UE provides these entities with control over the outcome of stockholder votes at the Company, except with respect to certain related-party transactions with UE or its subsidiaries, including WBL Corporation Limited (“WBL”), which require a separate vote of the non-UE stockholders.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	2. Basis of Presentation Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company has three wholly owned subsidiaries located in China: MFLEX Suzhou Co., Ltd., (“MFC”), formerly known as Multi-Fineline Electronix (Suzhou No. 2) Co., Ltd. (“MFC2”) and into which Multi-Fineline Electronix (Suzhou) Co., Ltd. (“MFC1”, which we are in the process of de-registering) was merged in fiscal 2010, and MFLEX Chengdu Co., Ltd. (“MFLEX Chengdu”); one located in the Cayman Islands: M-Flex Cayman Islands, Inc. (“MFCI”); one located in Singapore: Multi-Fineline Electronix Singapore Pte. Ltd. (“MFLEX Singapore”); one located in Malaysia: Multi-Fineline Electronix Malaysia Sdn. Bhd. (“MFM”); one located in Cambridge, England: MFLEX UK Limited (“MFE”); one located in Korea: MFLEX Korea, Ltd. (“MKR”); and one located in the Netherlands: MFLEX B.V. (“MNE”). All significant intercompany transactions and balances have been eliminated in consolidation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s 2015 Annual Report on Form 10-K. The financial information presented in the accompanying statements reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the periods indicated. All such adjustments are of a normal recurring nature. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. Unless otherwise indicated, the financial information in these notes is presented in thousands (except per share amounts). Proposed Acquisition by DSBJ On February 4, 2016, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Suzhou Dongshan Precision Manufacturing Co., Ltd., a company organized under the laws of the People’s Republic of China (“DSBJ”), and Dragon Electronix Merger Sub Inc., a Delaware corporation and indirect wholly owned subsidiary of DSBJ (“Merger Sub”), under which Merger Sub will be merged with and into the Company (the “Merger”), with the Company continuing after the Merger as the surviving corporation and indirect subsidiary of DSBJ. The Merger Agreement has been unanimously approved by the Company’s Board of Directors. Under the terms of the Merger Agreement, the Company’s stockholders will receive $23.95 in cash for each share of common stock held at the close of the transaction. The proposed transaction values the Company’s equity at approximately $610,000 on a fully diluted basis. Consummation of the Merger is subject to approval by the Company’s stockholders and DSBJ’s stockholders, certain regulatory approvals and other closing conditions and is expected to occur in the third quarter of 2016. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised authoritative guidance that requires a reporting entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. The revised guidance is effective for annual periods beginning after December 15, 2017 (January 2018 for the Company), including interim periods within that reporting period. The Company is currently evaluating the impact of its pending adoption of this guidance on its financial position, results of operations and cash flows. In February 2016, the FASB issued revised authoritative guidance that aims to increase transparency and comparability by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. The guidance is effective for annual periods beginning after December 15, 2018 (January 2019 for the Company), including interim periods within those annual periods. The Company is currently evaluating the impact of its pending adoption of this new guidance on its financial position, results of operations and cash flows. In March 2016, the FASB issued authoritative guidance that aims to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2016 (January 2017 for the Company), and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. The Company is currently evaluating the impact of its pending adoption of this new guidance on its financial position, results of operations and cash flows. Fair Value Measurements The carrying amounts of certain of the Company’s financial instruments, including cash, accounts receivable, accounts payable and other current liabilities approximated fair value due to their short maturities. For recognition purposes, on a recurring basis, the Company’s assets and liabilities related to money market funds are measured at fair value at the end of each reporting period. The fair value of the Company’s money market funds was measured using Level 1 fair value inputs, which consisted of quoted market prices in active markets for identical assets and liabilities. The Company’s assets and liabilities measured at fair value on a recurring basis subject to the disclosure requirements as defined under the FASB authoritative accounting guidance were as follows: Fair Value Measurements of Assets and Liabilities on a Recurring Basis as of March 31, 2016 Level 1 Level 2 Level 3 Money market funds (cash and cash equivalents) $ 5,014 $ — $ — $ 5,014 $ — $ — Fair Value Measurements of Assets and Liabilities on a Recurring Basis as of December 31, 2015 Level 1 Level 2 Level 3 Money market funds (cash and cash equivalents) $ 5,009 $ — $ — $ 5,009 $ — $ — Inventories Inventories, net of applicable write-downs, were composed of the following: March 31, 2016 December 31, 2015 Raw materials and supplies $ 6,629 $ 9,684 Work-in-progress 13,163 15,340 Finished goods 31,990 31,431 $ 51,782 $ 56,455 Property, Plant and Equipment Property, plant and equipment, net, were composed of the following: March 31, 2016 December 31, 2015 Building $ 51,685 $ 51,427 Machinery and equipment 319,817 321,600 Computers and capitalized software 15,019 14,295 Building and leasehold improvements 2,756 2,748 Construction-in-progress 4,008 318 $ 393,285 $ 390,388 Accumulated depreciation and amortization (265,486 ) (258,401 ) $ 127,799 $ 131,987 Other Current Liabilities Other current liabilities were composed of the following: March 31, 2016 December 31, 2015 Wages and compensation $ 9,539 $ 12,843 Restructuring expenses¹ 2,915 2,954 Other accrued expenses 9,151 7,123 $ 21,605 $ 22,920 1 Refer to Note 7 for further information on the Company’s impairment and restructuring activities during the three months ended March 31, 2016. Product Warranty Accrual Changes in the product warranty accrual for the three months ended March 31, 2016 and 2015 were as follows: Balance at January 1 Warranty Expenditures Provision for Estimated Warranty Cost Balance at March 31 2016 $ 533 (419 ) 434 $ 548 2015 $ 1,013 (464 ) 256 $ 805 Net Income Per Share—Basic and Diluted The following table presents a reconciliation of basic and diluted shares for the three months ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 2015 Basic weighted-average number of common shares outstanding 24,609,764 24,318,019 Dilutive effect of potential common shares — 782,762 Diluted weighted-average number of common and potential common shares outstanding 24,609,764 25,100,781 Potential common shares excluded from the per share computations as the effect of their inclusion would not be dilutive 882,957 637,105 Commitments and Contingencies Litigation The Company is involved in litigation from time to time in the ordinary course of business. Other than as described, management does not believe the outcome of any currently pending matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. On April 29, 2016, a class action lawsuit was filed by a purported stockholder in the United States District Court in the Central District of California challenging the proposed Merger with DSBJ. The lawsuit alleges that the individual members of the Company’s Board of Directors (the “MFLEX Board”) breached their fiduciary duties to the Company’s stockholders by agreeing to the proposed merger transaction for inadequate consideration and through an allegedly flawed sales process, and that the defendant companies, MFLEX, DSBJ and Merger Sub, aided and abetted such alleged breaches. The plaintiff in the action seeks, among other things, an order enjoining the Merger and, in the event the merger is completed, rescission and/or damages as a result of the alleged violations of law, as well as fees and costs. Although it is not possible to predict the outcome of this litigation matter with certainty, MFLEX and the MFLEX Board believe that the claims asserted in this lawsuit are without merit and intend to vigorously defend against these claims. In view of our indemnification obligation to our directors, we are unable to estimate a range of loss, if any, that could result were there to be an adverse final decision. If an unfavorable outcome were to occur in these cases, it is possible that the impact could be material to our results of operations in the period(s) in which any such outcome becomes probable and estimable. Other Commitments The Company has outstanding purchase and other commitments, which exclude amounts already recorded on the Condensed Consolidated Balance Sheets. The outstanding purchase commitments to acquire capital assets and other materials and services totaled $12,316 and $9,922 as of March 31, 2016 and December 31, 2015, respectively. Pursuant to the laws applicable to the People’s Republic of China’s Foreign Investment Enterprises, the Company’s two active wholly owned subsidiaries in China, MFC and MFLEX Chengdu, are restricted from paying cash dividends on 10% of after-tax statutory profit, subject to certain cumulative limits. These restrictions as of March 31, 2016 and December 31, 2015 were $18,418 and $18,326, respectively. Significant Concentrations The Company’s net sales into its largest industry sectors, as a percentage of total net sales, are presented below: Three Months Ended March 31, 2016 2015 Smartphones 64 % 75 % Tablets 24 % 15 % Consumer electronics 1 10 % 9 % 1 Includes wearables and connected home devices.

Lines of Credit

Lines of Credit	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Lines of Credit	3. Lines of Credit During August 2014, the Company, as guarantor, and MFLEX Singapore, as borrower, entered into a Loan and Security Agreement with certain financial institutions, as lenders, and Bank of America, N.A. (“BA”), as agent, providing for a senior revolving credit facility in an amount up to $30,000. The credit facility has a three-year term, and availability under the credit facility is calculated based on a formula which takes into account multiple factors, including the accounts receivable of borrower, the geographic location of borrower’s customer, and whether the customer’s receivable is insured by a third party. Amounts outstanding will bear interest at either: (1) a rate equal to LIBOR or SIBOR, plus an applicable margin, which ranges from 175 to 275 basis points, or (2) a defined base rate plus an applicable margin ranging from 75 to 275 basis points. In either case, the applicable margin is based on the fixed charge coverage ratio of the Company and its subsidiaries, measured on a consolidated basis. During July 2013, MFC entered into a Line of General Credit Agreement (the “MFC Credit Line”) with Agricultural Bank of China, Suzhou Wuzhong Sub-branch (“ABC”), providing for a line of credit to MFC in an amount of 200,000 Chinese Renminbi (“RMB”) ($30,954 at March 31, 2016). The MFC Credit Line will mature on July 30, 2016. The Company is in the process of renewing this line of credit. During May 2013, MFC entered into a Line of Credit Agreement (the “CCB Credit Line”) with China Construction Bank, Suzhou Industry Park Sub-Branch (“CCB”), which provides for a borrowing facility for 300,000 RMB ($46,431 at March 31, 2016). The CCB Credit Line will mature on May 5, 2016 . A summary of the lines of credit is as follows: Amounts Available at Amounts Outstanding at March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 Line of credit (BA) $ 30,000 $ 30,000 $ — $ — Line of credit (ABC) 30,954 30,800 — — Line of credit (CCB) 46,431 46,199 — — $ 107,385 $ 106,999 $ — $ — As of March 31, 2016, the Company was in compliance with all applicable financial covenants.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Segment Information	4. Segment Information Based on the evaluation of the Company’s internal financial information, management believes that the Company operates in one reportable segment under one reporting unit. The Company is primarily engaged in the engineering, design and manufacture of flexible circuit boards along with related component assemblies. For the periods presented, the Company operated in four geographical areas: United States, China, Singapore and Other (which includes Malaysia, Korea and the United Kingdom). Net sales are presented based on the country in which the sales originate, which is where the legal entity is domiciled. The financial results of the Company’s geographic segments are presented on a basis consistent with the condensed consolidated financial statements. The geographic area’s net sales amounts include intra-company product sales transactions, which are offset in the elimination line. Net sales by geographic segment is as follows: Three Months Ended March 31, 2016 2015 Net sales United States $ 2,056 $ 3,237 China 103,068 123,836 Singapore 96,447 141,889 Other — 517 Eliminations (100,325 ) (120,380 ) Total $ 101,246 $ 149,099

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	5. Stock-Based Compensation 2014 Equity Incentive Plan At the Company’s annual meeting of stockholders on March 5, 2014, the stockholders approved the Company’s 2014 Equity Incentive Plan (the “2014 Plan”). Upon stockholder approval of the 2014 Plan, the Company’s 2004 Stock Incentive Plan, as amended and restated to date (the “2004 Plan”) was terminated. Restricted Stock Units From time to time, the Company grants service-based restricted stock units (“RSUs”) under the 2014 Plan to certain employees (including executive officers) and directors at no cost to such individual. Each RSU represents one hypothetical share of the Company’s common stock, without voting or dividend rights. The RSUs granted to employees generally vest over a period of three years with one-third vesting on each of the anniversary dates of the grant date. Total compensation cost related to RSUs is determined based on the fair value of the Company’s common stock on the date of grant and is amortized into expense over the vesting period using the straight-line method. RSU activity for the three months ended March 31, 2016 is summarized as follows: Number of Shares Weighted -Average Grant-Date Fair Value Non-vested shares outstanding at December 31, 2015 1,246,653 $ 9.13 Granted — — Vested (276,477 ) 8.68 Canceled (4,800 ) 12.05 Non-vested shares outstanding at March 31, 2016 965,376 $ 9.25 RSU details for the three months ended March 31, 2016 and 2015 are summarized as follows: Three Months Ended March 31, 2016 2015 Service-based RSUs granted — 24,780 Stock-based compensation expense recognized $ 1,036 $ 1,220 Weighted-average grant-date fair value of non-vested RSUs granted $ — $ 19.82 Weighted-average grant-date fair value of RSUs vested $ 8.68 $ 13.81 Aggregate intrinsic value of RSUs vested $ 5,122 $ 752 Unearned compensation as of March 31, 2016 was $4,770 related to non-vested RSUs, which will be recognized into expense over the weighted-average remaining contractual life of the non-vested RSUs of 1.2 years. Stock-Based Compensation Expense Summary The following table shows a summary of the stock-based compensation expense by expense type included in the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 2015 Cost of sales $ 99 $ 103 Research and development 105 101 Sales and marketing 66 163 General and administrative 766 853 Total $ 1,036 $ 1,220

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	6. Income Taxes As of March 31, 2016, the Company recorded a liability for income taxes associated with uncertain tax positions of $13,834, of which $5,832, if recognized, would favorably affect the Company’s effective tax rate. As of December 31, 2015, the total liability for income taxes associated with uncertain tax positions was $13,835, of which $5,832, if recognized, would favorably affect the Company’s effective tax rate. The Company anticipates that there will be changes to the unrecognized tax benefit associated with uncertain tax positions due to the expiration of the statutes of limitation, payment of tax on amended returns, audit settlements and other changes in reserves. However, due to the uncertainty regarding the timing of these events, other than the statute of limitation expiration, a current estimate of the range of changes that may occur within the next 12 months cannot be made. The Chinese tax authority has concluded the field work associated with auditing the income tax returns of MFC and MFC1 for tax years 2005 through 2011 related to transfer pricing on tangible goods sold by the Company to related parties. The Chinese tax authority issued a final notice of assessment of $12,569, including interest, and the Company made the corresponding payment in February 2015. The Company is currently seeking relief from double taxation through competent authority on this cross-border adjustment. An estimate of the ultimate resolution cannot be made at this time. The Chinese tax authority is currently auditing the income tax returns of MFLEX Chengdu for tax years 2009 through 2015. The Chinese tax authority raised questions related to transfer pricing on tangible goods sold by the Company to related parties. The questions primarily related to the transfer pricing methodology and the selection of comparable companies. Discussions with the Chinese tax authority surrounding this issue are ongoing. Management believes that an adequate provision has been made related to this audit. The outcome of these tax audits cannot be predicted with certainty. If any issues raised in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, then the Company could be required to adjust its provision for income tax in the period such resolution occurs. Any significant adjustments from the tax authorities could have a material adverse effect on the Company’s results of operations, cash flows and financial position if not resolved favorably.

Impairment and Restructuring

Impairment and Restructuring	3 Months Ended
	Mar. 31, 2016
Restructuring And Related Activities [Abstract]
Impairment and Restructuring	7. Impairment and Restructuring The Company recorded the following impairment and restructuring (recoveries) expenses during the three months ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 2015 Asset recoveries $ (6 ) $ (284 ) Gain on sale of a satellite facility — (1,101 ) One-time termination benefits — 13 Other costs 1 192 Impairment and restructuring $ (5 ) $ (1,180 ) Restructuring Reserve Activity The following table reflects the movement activity of the restructuring reserve for the three months ended March 31, 2016: One-Time Termination Benefits Contract Termination Costs Other Costs Total Accrued Restructuring Accrued at December 31, 2015 $ — $ — $ 2,954 $ 2,954 Restructuring additions — — 1 1 Adjustment/foreign exchange effect — — 14 14 Amount paid — — (54 ) (54 ) Accrued at March 31, 2016 $ — $ — $ 2,915 $ 2,915

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	8. Subsequent Events In anticipation of the closing of the Merger, on May 2, 2016, the Company, as guarantor, and MFLEX Singapore, as borrower, entered into a Second Amendment to Loan and Security Agreement (“Second Amendment”) with certain financial institutions, as lenders, and Bank of America, N.A., as agent. The Second Amendment amended the Loan and Security Agreement to, among other items, consent to the change of control of the Company which will result from the Merger Agreement and to amend the covenant relating to a future change of control to reflect DSBJ as the indirect parent of the Company. The foregoing description is qualified in its entirety by reference to the Second Amendment to Loan and Security Agreement, filed as Exhibit 10.95 to this Form 10-Q. On May 4, 2016, MFC entered into a credit line agreement with China Construction Bank, Suzhou Industry Park Sub-Branch (“CCB”), which provides for a borrowing facility for 300,000 RMB ($46,431 at March 31, 2016). The CCB credit line agreement is effective May 6, 2016 and will mature on May 7, 2017. Interest on the credit line agreement for U.S. dollar lending will be negotiated and determined by both parties based on the lending cost in the market for U.S. dollar transactions on the day the loan is made. For RMB lending, the interest rate is based on the current rate set by the People’s Bank of China at the time of borrowing. The foregoing description is qualified in its entirety by reference to the Credit Line Contract and Facility Offer Letter, filed as Exhibits 10.96 and 10.97, respectively, to this Form 10-Q. As of May 5, 2016, no amounts were outstanding under our loan agreements with Bank of America or CCB.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company has three wholly owned subsidiaries located in China: MFLEX Suzhou Co., Ltd., (“MFC”), formerly known as Multi-Fineline Electronix (Suzhou No. 2) Co., Ltd. (“MFC2”) and into which Multi-Fineline Electronix (Suzhou) Co., Ltd. (“MFC1”, which we are in the process of de-registering) was merged in fiscal 2010, and MFLEX Chengdu Co., Ltd. (“MFLEX Chengdu”); one located in the Cayman Islands: M-Flex Cayman Islands, Inc. (“MFCI”); one located in Singapore: Multi-Fineline Electronix Singapore Pte. Ltd. (“MFLEX Singapore”); one located in Malaysia: Multi-Fineline Electronix Malaysia Sdn. Bhd. (“MFM”); one located in Cambridge, England: MFLEX UK Limited (“MFE”); one located in Korea: MFLEX Korea, Ltd. (“MKR”); and one located in the Netherlands: MFLEX B.V. (“MNE”). All significant intercompany transactions and balances have been eliminated in consolidation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s 2015 Annual Report on Form 10-K. The financial information presented in the accompanying statements reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the periods indicated. All such adjustments are of a normal recurring nature. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. Unless otherwise indicated, the financial information in these notes is presented in thousands (except per share amounts).
Proposed Acquisition by DSBJ	Proposed Acquisition by DSBJ On February 4, 2016, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Suzhou Dongshan Precision Manufacturing Co., Ltd., a company organized under the laws of the People’s Republic of China (“DSBJ”), and Dragon Electronix Merger Sub Inc., a Delaware corporation and indirect wholly owned subsidiary of DSBJ (“Merger Sub”), under which Merger Sub will be merged with and into the Company (the “Merger”), with the Company continuing after the Merger as the surviving corporation and indirect subsidiary of DSBJ. The Merger Agreement has been unanimously approved by the Company’s Board of Directors. Under the terms of the Merger Agreement, the Company’s stockholders will receive $23.95 in cash for each share of common stock held at the close of the transaction. The proposed transaction values the Company’s equity at approximately $610,000 on a fully diluted basis. Consummation of the Merger is subject to approval by the Company’s stockholders and DSBJ’s stockholders, certain regulatory approvals and other closing conditions and is expected to occur in the third quarter of 2016.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised authoritative guidance that requires a reporting entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. The revised guidance is effective for annual periods beginning after December 15, 2017 (January 2018 for the Company), including interim periods within that reporting period. The Company is currently evaluating the impact of its pending adoption of this guidance on its financial position, results of operations and cash flows. In February 2016, the FASB issued revised authoritative guidance that aims to increase transparency and comparability by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. The guidance is effective for annual periods beginning after December 15, 2018 (January 2019 for the Company), including interim periods within those annual periods. The Company is currently evaluating the impact of its pending adoption of this new guidance on its financial position, results of operations and cash flows. In March 2016, the FASB issued authoritative guidance that aims to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2016 (January 2017 for the Company), and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. The Company is currently evaluating the impact of its pending adoption of this new guidance on its financial position, results of operations and cash flows.
Fair Value Measurements	Fair Value Measurements The carrying amounts of certain of the Company’s financial instruments, including cash, accounts receivable, accounts payable and other current liabilities approximated fair value due to their short maturities. For recognition purposes, on a recurring basis, the Company’s assets and liabilities related to money market funds are measured at fair value at the end of each reporting period. The fair value of the Company’s money market funds was measured using Level 1 fair value inputs, which consisted of quoted market prices in active markets for identical assets and liabilities. The Company’s assets and liabilities measured at fair value on a recurring basis subject to the disclosure requirements as defined under the FASB authoritative accounting guidance were as follows: Fair Value Measurements of Assets and Liabilities on a Recurring Basis as of March 31, 2016 Level 1 Level 2 Level 3 Money market funds (cash and cash equivalents) $ 5,014 $ — $ — $ 5,014 $ — $ — Fair Value Measurements of Assets and Liabilities on a Recurring Basis as of December 31, 2015 Level 1 Level 2 Level 3 Money market funds (cash and cash equivalents) $ 5,009 $ — $ — $ 5,009 $ — $ —
Inventories	Inventories Inventories, net of applicable write-downs, were composed of the following: March 31, 2016 December 31, 2015 Raw materials and supplies $ 6,629 $ 9,684 Work-in-progress 13,163 15,340 Finished goods 31,990 31,431 $ 51,782 $ 56,455
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment, net, were composed of the following: March 31, 2016 December 31, 2015 Building $ 51,685 $ 51,427 Machinery and equipment 319,817 321,600 Computers and capitalized software 15,019 14,295 Building and leasehold improvements 2,756 2,748 Construction-in-progress 4,008 318 $ 393,285 $ 390,388 Accumulated depreciation and amortization (265,486 ) (258,401 ) $ 127,799 $ 131,987
Other Current Liabilities	Other Current Liabilities Other current liabilities were composed of the following: March 31, 2016 December 31, 2015 Wages and compensation $ 9,539 $ 12,843 Restructuring expenses¹ 2,915 2,954 Other accrued expenses 9,151 7,123 $ 21,605 $ 22,920 1 Refer to Note 7 for further information on the Company’s impairment and restructuring activities during the three months ended March 31, 2016.
Product Warranty Accrual	Product Warranty Accrual Changes in the product warranty accrual for the three months ended March 31, 2016 and 2015 were as follows: Balance at January 1 Warranty Expenditures Provision for Estimated Warranty Cost Balance at March 31 2016 $ 533 (419 ) 434 $ 548 2015 $ 1,013 (464 ) 256 $ 805
Net Income Per Share-Basic and Diluted	Net Income Per Share—Basic and Diluted The following table presents a reconciliation of basic and diluted shares for the three months ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 2015 Basic weighted-average number of common shares outstanding 24,609,764 24,318,019 Dilutive effect of potential common shares — 782,762 Diluted weighted-average number of common and potential common shares outstanding 24,609,764 25,100,781 Potential common shares excluded from the per share computations as the effect of their inclusion would not be dilutive 882,957 637,105
Commitments and Contingencies	Commitments and Contingencies Litigation The Company is involved in litigation from time to time in the ordinary course of business. Other than as described, management does not believe the outcome of any currently pending matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. On April 29, 2016, a class action lawsuit was filed by a purported stockholder in the United States District Court in the Central District of California challenging the proposed Merger with DSBJ. The lawsuit alleges that the individual members of the Company’s Board of Directors (the “MFLEX Board”) breached their fiduciary duties to the Company’s stockholders by agreeing to the proposed merger transaction for inadequate consideration and through an allegedly flawed sales process, and that the defendant companies, MFLEX, DSBJ and Merger Sub, aided and abetted such alleged breaches. The plaintiff in the action seeks, among other things, an order enjoining the Merger and, in the event the merger is completed, rescission and/or damages as a result of the alleged violations of law, as well as fees and costs. Although it is not possible to predict the outcome of this litigation matter with certainty, MFLEX and the MFLEX Board believe that the claims asserted in this lawsuit are without merit and intend to vigorously defend against these claims. In view of our indemnification obligation to our directors, we are unable to estimate a range of loss, if any, that could result were there to be an adverse final decision. If an unfavorable outcome were to occur in these cases, it is possible that the impact could be material to our results of operations in the period(s) in which any such outcome becomes probable and estimable. Other Commitments The Company has outstanding purchase and other commitments, which exclude amounts already recorded on the Condensed Consolidated Balance Sheets. The outstanding purchase commitments to acquire capital assets and other materials and services totaled $12,316 and $9,922 as of March 31, 2016 and December 31, 2015, respectively. Pursuant to the laws applicable to the People’s Republic of China’s Foreign Investment Enterprises, the Company’s two active wholly owned subsidiaries in China, MFC and MFLEX Chengdu, are restricted from paying cash dividends on 10% of after-tax statutory profit, subject to certain cumulative limits. These restrictions as of March 31, 2016 and December 31, 2015 were $18,418 and $18,326, respectively.
Significant Concentrations	Significant Concentrations The Company’s net sales into its largest industry sectors, as a percentage of total net sales, are presented below: Three Months Ended March 31, 2016 2015 Smartphones 64 % 75 % Tablets 24 % 15 % Consumer electronics 1 10 % 9 % 1 Includes wearables and connected home devices.
Description of Business	Description of Business Multi-Fineline Electronix, Inc. (“MFLEX” or the “Company”) was incorporated in 1984 in the State of California and reincorporated in the State of Delaware in June 2004. The Company is primarily engaged in the engineering, design and manufacture of flexible printed circuit boards along with related component assemblies. United Engineers Limited (“UEL”) and its wholly owned subsidiary, UE Centennial Venture Pte. Ltd (“UECV”, and together with UEL, “UE”), through its affiliates and subsidiaries, beneficially owned approximately 60% and 61% of the Company’s outstanding common stock as of March 31, 2016 and December 31, 2015, respectively. This beneficial ownership of the Company’s common stock by UE provides these entities with control over the outcome of stockholder votes at the Company, except with respect to certain related-party transactions with UE or its subsidiaries, including WBL Corporation Limited (“WBL”), which require a separate vote of the non-UE stockholders.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis	The Company’s assets and liabilities measured at fair value on a recurring basis subject to the disclosure requirements as defined under the FASB authoritative accounting guidance were as follows: Fair Value Measurements of Assets and Liabilities on a Recurring Basis as of March 31, 2016 Level 1 Level 2 Level 3 Money market funds (cash and cash equivalents) $ 5,014 $ — $ — $ 5,014 $ — $ — Fair Value Measurements of Assets and Liabilities on a Recurring Basis as of December 31, 2015 Level 1 Level 2 Level 3 Money market funds (cash and cash equivalents) $ 5,009 $ — $ — $ 5,009 $ — $ —
Components of Inventories, Net of Applicable Write-Downs	Inventories, net of applicable write-downs, were composed of the following: March 31, 2016 December 31, 2015 Raw materials and supplies $ 6,629 $ 9,684 Work-in-progress 13,163 15,340 Finished goods 31,990 31,431 $ 51,782 $ 56,455
Components of Property, Plant and Equipment	Property, plant and equipment, net, were composed of the following: March 31, 2016 December 31, 2015 Building $ 51,685 $ 51,427 Machinery and equipment 319,817 321,600 Computers and capitalized software 15,019 14,295 Building and leasehold improvements 2,756 2,748 Construction-in-progress 4,008 318 $ 393,285 $ 390,388 Accumulated depreciation and amortization (265,486 ) (258,401 ) $ 127,799 $ 131,987
Components of Other Current Liabilities	Other current liabilities were composed of the following: March 31, 2016 December 31, 2015 Wages and compensation $ 9,539 $ 12,843 Restructuring expenses¹ 2,915 2,954 Other accrued expenses 9,151 7,123 $ 21,605 $ 22,920 1 Refer to Note 7 for further information on the Company’s impairment and restructuring activities during the three months ended March 31, 2016.
Changes in the Product Warranty Accrual	Changes in the product warranty accrual for the three months ended March 31, 2016 and 2015 were as follows: Balance at January 1 Warranty Expenditures Provision for Estimated Warranty Cost Balance at March 31 2016 $ 533 (419 ) 434 $ 548 2015 $ 1,013 (464 ) 256 $ 805
Reconciliation of Basic and Diluted Shares	The following table presents a reconciliation of basic and diluted shares for the three months ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 2015 Basic weighted-average number of common shares outstanding 24,609,764 24,318,019 Dilutive effect of potential common shares — 782,762 Diluted weighted-average number of common and potential common shares outstanding 24,609,764 25,100,781 Potential common shares excluded from the per share computations as the effect of their inclusion would not be dilutive 882,957 637,105
Company's Sales into its Largest Industry Sectors	The Company’s net sales into its largest industry sectors, as a percentage of total net sales, are presented below: Three Months Ended March 31, 2016 2015 Smartphones 64 % 75 % Tablets 24 % 15 % Consumer electronics 1 10 % 9 % 1 Includes wearables and connected home devices.

Lines of Credit (Tables)

Lines of Credit (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Summary of the Lines of Credit	A summary of the lines of credit is as follows: Amounts Available at Amounts Outstanding at March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 Line of credit (BA) $ 30,000 $ 30,000 $ — $ — Line of credit (ABC) 30,954 30,800 — — Line of credit (CCB) 46,431 46,199 — — $ 107,385 $ 106,999 $ — $ —

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Net Sales by Geographic Segment	Net sales by geographic segment is as follows: Three Months Ended March 31, 2016 2015 Net sales United States $ 2,056 $ 3,237 China 103,068 123,836 Singapore 96,447 141,889 Other — 517 Eliminations (100,325 ) (120,380 ) Total $ 101,246 $ 149,099

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Restricted Stock Units Activity	RSU activity for the three months ended March 31, 2016 is summarized as follows: Number of Shares Weighted -Average Grant-Date Fair Value Non-vested shares outstanding at December 31, 2015 1,246,653 $ 9.13 Granted — — Vested (276,477 ) 8.68 Canceled (4,800 ) 12.05 Non-vested shares outstanding at March 31, 2016 965,376 $ 9.25
Restricted Stock Units Details	RSU details for the three months ended March 31, 2016 and 2015 are summarized as follows: Three Months Ended March 31, 2016 2015 Service-based RSUs granted — 24,780 Stock-based compensation expense recognized $ 1,036 $ 1,220 Weighted-average grant-date fair value of non-vested RSUs granted $ — $ 19.82 Weighted-average grant-date fair value of RSUs vested $ 8.68 $ 13.81 Aggregate intrinsic value of RSUs vested $ 5,122 $ 752
Summary of Compensation Cost	The following table shows a summary of the stock-based compensation expense by expense type included in the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 2015 Cost of sales $ 99 $ 103 Research and development 105 101 Sales and marketing 66 163 General and administrative 766 853 Total $ 1,036 $ 1,220

Impairment and Restructuring (T

Impairment and Restructuring (Tables)	3 Months Ended
	Mar. 31, 2016
Restructuring And Related Activities [Abstract]
Schedule of Impairment and Restructuring (Recoveries) Expense	The Company recorded the following impairment and restructuring (recoveries) expenses during the three months ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 2015 Asset recoveries $ (6 ) $ (284 ) Gain on sale of a satellite facility — (1,101 ) One-time termination benefits — 13 Other costs 1 192 Impairment and restructuring $ (5 ) $ (1,180 )
Activity of Restructuring Reserve	The following table reflects the movement activity of the restructuring reserve for the three months ended March 31, 2016: One-Time Termination Benefits Contract Termination Costs Other Costs Total Accrued Restructuring Accrued at December 31, 2015 $ — $ — $ 2,954 $ 2,954 Restructuring additions — — 1 1 Adjustment/foreign exchange effect — — 14 14 Amount paid — — (54 ) (54 ) Accrued at March 31, 2016 $ — $ — $ 2,915 $ 2,915

Description of Business - Addit

Description of Business - Additional Information (Detail)	Mar. 31, 2016	Dec. 31, 2015
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Percentage of shares owned by affiliates and subsidiaries of UE	60.00%	61.00%

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail)	Feb. 04, 2016USD ($)$ / shares	Mar. 31, 2016USD ($)Subsidiary	Dec. 31, 2015USD ($)
Basis Of Presentation And Significant Accounting Policies [Line Items]
Outstanding purchase and other commitments | $		$ 12,316,000	$ 9,922,000
Restrictions on net income | $		$ 18,418,000	$ 18,326,000
Percentage of restricted after-tax profits from paying cash dividends		10.00%
Merger Agreement
Basis Of Presentation And Significant Accounting Policies [Line Items]
Date of merger agreement		Feb. 4, 2016
Cash to be received for each share of common stock | $ / shares	$ 23.95
Equity value in transaction | $	$ 610,000
China
Basis Of Presentation And Significant Accounting Policies [Line Items]
Number of wholly owned subsidiaries		3
China | MFC and MFLEX Chengdu
Basis Of Presentation And Significant Accounting Policies [Line Items]
Number of active wholly owned subsidiaries restricted from paying cash dividends		2
Cayman Islands
Basis Of Presentation And Significant Accounting Policies [Line Items]
Number of wholly owned subsidiaries		1
Singapore
Basis Of Presentation And Significant Accounting Policies [Line Items]
Number of wholly owned subsidiaries		1
Malaysia
Basis Of Presentation And Significant Accounting Policies [Line Items]
Number of wholly owned subsidiaries		1
England
Basis Of Presentation And Significant Accounting Policies [Line Items]
Number of wholly owned subsidiaries		1
Korea
Basis Of Presentation And Significant Accounting Policies [Line Items]
Number of wholly owned subsidiaries		1
Netherlands
Basis Of Presentation And Significant Accounting Policies [Line Items]
Number of wholly owned subsidiaries		1

Basis of Presentation - Schedul

Basis of Presentation - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring - Level 1 - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value of assets , Total	$ 5,014	$ 5,009
Money market funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Money market funds (cash and cash equivalents)	$ 5,014	$ 5,009

Basis of Presentation - Compone

Basis of Presentation - Components of Inventories, Net of Applicable Write-Downs (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 6,629	$ 9,684
Work-in-progress	13,163	15,340
Finished goods	31,990	31,431
Inventories, net	$ 51,782	$ 56,455

Basis of Presentation - Compo24

Basis of Presentation - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 393,285	$ 390,388
Accumulated depreciation and amortization	(265,486)	(258,401)
Property, plant and equipment, net	127,799	131,987
Building
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	51,685	51,427
Machinery and equipment
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	319,817	321,600
Computers and capitalized software
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	15,019	14,295
Building and leasehold improvements
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	2,756	2,748
Construction-in-progress
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 4,008	$ 318

Basis of Presentation - Compo25

Basis of Presentation - Components of Other Current Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Other Liabilities Current [Abstract]
Wages and compensation	$ 9,539	$ 12,843
Restructuring expenses	2,915	2,954
Other accrued expenses	9,151	7,123
Other current liabilities	$ 21,605	$ 22,920

Basis of Presentation - Changes

Basis of Presentation - Changes in the Product Warranty Accrual (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Guarantees [Abstract]
Beginning Balance	$ 533	$ 1,013
Warranty Expenditures	(419)	(464)
Provision for Estimated Warranty Cost	434	256
Ending Balance	$ 548	$ 805

Basis of Presentation - Reconci

Basis of Presentation - Reconciliation of Basic and Diluted Shares (Detail) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Weighted Average Number Of Shares Outstanding Diluted Disclosure Items [Abstract]
Basic weighted-average number of common shares outstanding	24,609,764	24,318,019
Dilutive effect of potential common shares		782,762
Diluted weighted-average number of common and potential common shares outstanding	24,609,764	25,100,781
Potential common shares excluded from the per share computations as the effect of their inclusion would not be dilutive	882,957	637,105

Basis of Presentation - Company

Basis of Presentation - Company's Sales into its Largest Industry Sectors (Detail) - Product Concentration Risk - Sales Revenue, Product Line	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Smartphones
Concentration Risk [Line Items]
Percentage of net sales to largest industry sectors	64.00%	75.00%
Tablets
Concentration Risk [Line Items]
Percentage of net sales to largest industry sectors	24.00%	15.00%
Consumer Electronics
Concentration Risk [Line Items]
Percentage of net sales to largest industry sectors	10.00%	9.00%

Lines of Credit - Additional In

Lines of Credit - Additional Information (Detail) ¥ in Thousands, $ in Thousands	1 Months Ended	3 Months Ended
	Aug. 31, 2014USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Jul. 31, 2013CNY (¥)	May. 31, 2013CNY (¥)
Line Of Credit Facility [Line Items]
Borrowing capacity under Line of Credit Agreement		$ 107,385	$ 106,999
Bank of America | Loan and Security Agreement
Line Of Credit Facility [Line Items]
Borrowing capacity under Line of Credit Agreement	$ 30,000	30,000	30,000
Revolving credit facility, term	3 years
Bank of America | Minimum | Loan and Security Agreement | LIBOR or SIBOR
Line Of Credit Facility [Line Items]
Loan interest rate spread	1.75%
Bank of America | Minimum | Loan and Security Agreement | Basis Rate
Line Of Credit Facility [Line Items]
Loan interest rate spread	0.75%
Bank of America | Maximum | Loan and Security Agreement | LIBOR or SIBOR
Line Of Credit Facility [Line Items]
Loan interest rate spread	2.75%
Bank of America | Maximum | Loan and Security Agreement | Basis Rate
Line Of Credit Facility [Line Items]
Loan interest rate spread	2.75%
Agricultural Bank of China | Line of General Credit Agreement
Line Of Credit Facility [Line Items]
Borrowing capacity under Line of Credit Agreement		$ 30,954	30,800	¥ 200,000
Line of credit, maturity date		Jul. 30, 2016
China Construction Bank | Foreign Line of Credit
Line Of Credit Facility [Line Items]
Borrowing capacity under Line of Credit Agreement		$ 46,431	$ 46,199		¥ 300,000
Line of credit, maturity date		May 5, 2016

Lines of Credit - Summary of th

Lines of Credit - Summary of the Lines of Credit (Detail) ¥ in Thousands, $ in Thousands	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Aug. 31, 2014USD ($)	Jul. 31, 2013CNY (¥)	May. 31, 2013CNY (¥)
Line Of Credit Facility [Line Items]
Line of credit, Amount Available	$ 107,385	$ 106,999
Bank of America | Loan and Security Agreement
Line Of Credit Facility [Line Items]
Line of credit, Amount Available	30,000	30,000	$ 30,000
Agricultural Bank of China | Line of General Credit Agreement
Line Of Credit Facility [Line Items]
Line of credit, Amount Available	30,954	30,800		¥ 200,000
China Construction Bank | Foreign Line of Credit
Line Of Credit Facility [Line Items]
Line of credit, Amount Available	$ 46,431	$ 46,199			¥ 300,000

Segment Information - Additiona

Segment Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016Segment
Segment Reporting [Abstract]
Number of reportable segment	1
Number of reporting unit	1
Number of geographical segment	4

Segment Information - Net Sales

Segment Information - Net Sales by Geographic Segment (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Net sales	$ 101,246	$ 149,099
Reportable Geographical Components | United States
Segment Reporting Information [Line Items]
Net sales	2,056	3,237
Reportable Geographical Components | China
Segment Reporting Information [Line Items]
Net sales	103,068	123,836
Reportable Geographical Components | Singapore
Segment Reporting Information [Line Items]
Net sales	96,447	141,889
Reportable Geographical Components | Other
Segment Reporting Information [Line Items]
Net sales		517
Eliminations
Segment Reporting Information [Line Items]
Net sales	$ (100,325)	$ (120,380)

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - Restricted Stock Units $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of hypothetical shares | shares	1
Vesting period	3 years
RSUs Vesting description	one-third
Unearned compensation related to non-vested RSUs | $	$ 4,770
Unearned compensation related to non-vested RSUs, weighted-average remaining contractual life (in years)	1 year 2 months 12 days

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Units Activity (Detail) - Restricted Stock Units - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Non-vested shares outstanding, Beginning Balance	1,246,653
Number of Shares, Granted		24,780
Number of Shares, Vested	(276,477)
Number of Shares, Canceled	(4,800)
Number of Shares, Non-vested shares outstanding, Ending Balance	965,376
Weighted-Average Grant-Date Fair Value of non-vested shares outstanding, Beginning Balance	$ 9.13
Weighted-Average Grant-Date Fair Value, Granted		$ 19.82
Weighted-Average Grant-Date Fair Value, Vested	8.68	$ 13.81
Weighted-Average Grant-Date Fair Value, Canceled	12.05
Weighted-Average Grant-Date Fair Value of non-vested shares outstanding, Ending Balance	$ 9.25

Stock-Based Compensation - Re35

Stock-Based Compensation - Restricted Stock Units Details (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense recognized	$ 1,036	$ 1,220
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Granted		24,780
Stock-based compensation expense recognized	$ 1,036	$ 1,220
Weighted-average grant-date fair value of non-vested RSUs granted		$ 19.82
Weighted-average grant-date fair value of RSUs vested	$ 8.68	$ 13.81
Aggregate intrinsic value of RSUs vested	$ 5,122	$ 752

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense recognized	$ 1,036	$ 1,220
Cost of sales
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense recognized	99	103
Research and development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense recognized	105	101
Sales and marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense recognized	66	163
General and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense recognized	$ 766	$ 853

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Income Taxes Disclosure [Line Items]
Liability for income taxes associated with uncertain tax positions, Gross	$ 13,834	$ 13,835
Liability for income taxes associated with uncertain tax positions that would have impact effective tax rate	5,832	$ 5,832
Chinese Tax Authority
Income Taxes Disclosure [Line Items]
Liabilities to pay based on assessment of the tax authority	$ 12,569

Impairment and Restructuring -

Impairment and Restructuring - Schedule of Impairment and Restructuring (Recoveries) Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Restructuring Costs And Asset Impairment Charges [Abstract]
Asset impairments (recoveries)	$ (6)	$ (284)
Gain on sale of a satellite facility		(1,101)
One-time termination benefits		13
Other costs	1	192
Impairment and restructuring	$ (5)	$ (1,180)

Impairment and Restructuring 39

Impairment and Restructuring - Activity of Restructuring Reserve (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Restructuring Cost And Reserve [Line Items]
Accrued, Beginning balance	$ 2,954
Restructuring additions	1
Adjustment/foreign exchange effect	14
Amount paid	(54)
Accrued, Ending balance	2,915
Other Costs
Restructuring Cost And Reserve [Line Items]
Accrued, Beginning balance	2,954
Restructuring additions	1
Adjustment/foreign exchange effect	14
Amount paid	(54)
Accrued, Ending balance	$ 2,915

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) ¥ in Thousands	May. 04, 2016CNY (¥)	Mar. 31, 2016USD ($)	May. 05, 2016USD ($)	Dec. 31, 2015USD ($)	May. 31, 2013CNY (¥)
Subsequent Event [Line Items]
Borrowing capacity under Line of Credit Agreement		$ 107,385,000		$ 106,999,000
China Construction Bank | Foreign Line of Credit
Subsequent Event [Line Items]
Borrowing capacity under Line of Credit Agreement		$ 46,431,000		$ 46,199,000	¥ 300,000
Line of credit, maturity date		May 5, 2016
China Construction Bank | Foreign Line of Credit | Subsequent Event
Subsequent Event [Line Items]
Borrowing capacity under Line of Credit Agreement | ¥	¥ 300,000
Line of credit, issuance date	May 4, 2016
Line of credit, effective date	May 6, 2016
Line of credit, maturity date	May 7, 2017
Line of credit, interest rate terms	For RMB lending, the interest rate is based on the current rate set by the People’s Bank of China at the time of borrowing
Line of credit, Amount Outstanding			$ 0
Bank of America | Subsequent Event
Subsequent Event [Line Items]
Line of credit, Amount Outstanding			$ 0